US inflation accelerated to 3.7% in September, its highest level since May, intensifying pressure on President Donald Trump and Republicans over the rising cost of living ahead of the November midterm elections.
The latest figures released by the US Bureau of Labor Statistics on Wednesday showed that consumer prices increased by 0.6% from August, while core inflation, which excludes volatile food and energy prices, also edged higher.
Iran War Drives Energy Costs Higher
Rising energy prices linked to the US-Israel war with Iran have contributed significantly to the increase in inflation, pushing up fuel costs and adding pressure to household budgets.
Average US petrol prices remain more than $1 per gallon above their levels a year earlier, according to the American Automobile Association. Diesel prices, which affect freight transportation and domestic supply chains, also reached a record high last month.
The rising cost of fuel has added to broader inflationary pressures, leaving households with less disposable income and increasing concerns about affordability.
The inflation figures come as the Republican Party prepares for midterm elections in which economic conditions are expected to play a central role.
US Interest Rate Rises
The Federal Reserve raised interest rates last month for the first time since 2023, citing elevated inflation. Higher interest rates typically increase borrowing costs across the economy, including mortgages and business loans.
The average rate on a 30-year US mortgage has climbed to 7.40%, adding to the financial burden on prospective homeowners.
